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Europe Daily Bulletin No. 12417
SECTORAL POLICIES / Transport

Air passenger rights, Croatian EU Council Presidency sends first proposals to Member States

The Croatian Presidency of the Council of the European Union proposed on Thursday 30 January guiding principles for the forthcoming discussions between Member States on the revision of the EU regulations on air passenger rights (261/2004 and 2027/97).

In a document sent to the national delegations, of which EUROPE has received a copy, the Presidency initially identified four "hot topics": (1) the thresholds for triggering compensation (in the event of cancellation and delay); (2) the levels of compensation (in the event of cancellation and delay); (3) the right to compensation in the event of significant delay following a missed connection; (4) the definition of extraordinary circumstances.

These were the points on which the Member States had not been able to reach a compromise, leading to the cessation of discussions in the EU Council in mid-2015 (see EUROPE 11334/7).

Compensation thresholds. In accordance with the principle of equal treatment and in the interests of simplicity, the Presidency proposes applying the same thresholds triggering the payment of compensation in the event of re-routing following cancellation of a flight as in the event of a long delay in arrival.

Following the European Commission's example, it also proposes to raise these thresholds from the current position, without giving further details at this stage.

Member States had expressed very different positions on this issue, with some in favour of the thresholds proposed by the Commission and others arguing for keeping lower thresholds in order to protect passengers (see EUROPE 11334/7).

Compensation levels. In line with the European Commission's position, Zagreb proposes to maintain the current compensation amounts from Regulation 261/2004, as well as the link between the amount and the distance of the flight.

In concrete terms, compensation would be set at: EUR 250 for flights of 1,500 km or less; EUR 400 for intra-Community flights of more than 1,500 km and for extra-Community flights from 1,500 to 3,500 km; EUR 600 for extra-Community flights of more than 3,500 km.

Some Member States might object to these amounts, as in previous discussions a consensus had emerged to reduce the compensation levels to EUR 250 for intra-Community flights between 1,500 km and 3,500 km.

Missed connection. Zagreb further proposes to strengthen the airlines' duty of care and re-routing obligations in the event of long delays to the final destination caused by a missed connection.

The Presidency does not, however, propose any compensation. By way of justification, it recalls that a recent Commission study (see EUROPE 12405/15) has shown that the priority for passengers, in the event of a long delay or cancellation, is to receive care and assistance, followed by the possibility of arriving at their destination as quickly as possible. The possibility of receiving compensation only comes in third place.

Extraordinary circumstances. Finally, Zagreb suggests establishing an exhaustive list of extraordinary circumstances under which air carriers would be exempted from their obligation to pay compensation.

The Commission's initial proposal provided for the definition of extraordinary circumstances as "circumstances which, by their nature or origin, are not inherent to the normal exercise of the activity of the air carrier concerned and are beyond its effective control", while introducing a non-exhaustive list of circumstances to be considered as extraordinary and non-extraordinary.

While Member States had agreed on a definition and a list of extraordinary circumstances, differences remained on the introduction of a separate category for technical defects. By including in particular "technical defects discovered during the pre-flight checks", some Member States feared that the introduction of this category would lead to a reduction in the level of passenger rights.

The Croatian Presidency's proposals will be examined on Tuesday 4 February by the national delegations at the meeting of the Council Working Party on Aviation.

For its part, the European Parliament adopted its position at first reading in February 2014 (see EUROPE 11012/5). (Original version in French by Damien Genicot)

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